I've been told by a number of people that we should have D&O insurance. Anyone have any thoughts on that?<br><br><div class="gmail_quote">On Sun, May 23, 2010 at 4:40 PM, Nick Farr (<a href="http://hackerspaces.org">hackerspaces.org</a>) <span dir="ltr"><<a href="mailto:nick@hackerspaces.org">nick@hackerspaces.org</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex;"><div class="im">On Sat, May 22, 2010 at 23:17, Matthew McCabe <<a href="mailto:matt@mrmccabe.com">matt@mrmccabe.com</a>> wrote:<br>
> The Austin Hackerspace is looking at options for forming a legal<br>
> entity and are considering an LLC or DBA. What legal formation do the<br>
> US based hackerspaces typically use?<br>
<br>
</div>US Hackerspaces typicaly go the Non-Profit Corporate route, or the LLC<br>
route. I actually have never heard of a hackerspace going DBA.<br>
<br>
The main advantage to being a non-profit is the tax benefit, ability<br>
to receive grants and offer tax-deductibility for donations as well as<br>
membership control of the organization. The main disadvantage is the<br>
paperwork overhead.<br>
<br>
The main advantage to an LLC is simplicity of paperwork. The downside<br>
is that those listed as members of the LLC are liable for paying taxes<br>
on the profits of the hackerspace.<br>
<br>
Both an LLC and a Non-Profit corporation offer "corporate shield"<br>
status, meaning the assets of the directors/members are not generally<br>
at stake in a claim on the activities of the hackerspace.<br>
<div class="im"><br>
> Also, we are looking at buying liability insurance to protect the<br>
> founders and members of the space. Any suggestions on what level of<br>
> coverage we should have?<br>
<br>
</div>Get the general (commercial) liability insurance coverage required by<br>
your lease. You really don't need insurance until you actually<br>
acquire a space and most other insurance for small organizations is<br>
not generally worth the cost.<br>
<br>
Nick Farr / <a href="http://nickfarr.org" target="_blank">http://nickfarr.org</a> / 8B13F204<br>
Washington, DC, 20013-1208<br>
Currently in Germany: +49 177 647-8916<br>
P: +1 (707) 676-FARR<br>
F: +1 (866) 536-2616<br>
<div><div></div><div class="h5">_______________________________________________<br>
Discuss mailing list<br>
<a href="mailto:Discuss@lists.hackerspaces.org">Discuss@lists.hackerspaces.org</a><br>
<a href="http://lists.hackerspaces.org/mailman/listinfo/discuss" target="_blank">http://lists.hackerspaces.org/mailman/listinfo/discuss</a><br>
</div></div></blockquote></div><br>